Community Benefit

Carolinas HealthCare System provides a broad range of community benefit activities that not only enhance the
quality of medical care but profoundly influence the quality of life. Indeed, CHS facilities are typically the main
engines of business activity in the communities they serve, exercising disproportionate stimulus on regional
economic development.

"Community benefit" is a specific industry term that refers to the total cost of providing financial assistance to
uninsured patients; discounts for uninsured patients; and a range of other services that fulfill vital needs but do
not pay for themselves. Such services include community health clinics, research initiatives and education.

The total investment in CHS communities above and beyond regular operating expenditures was
approximately $1.16 billion in 2011.

CHS Community Benefit

Costs of financial assistance to uninsured patients

$ 215 million

Costs of discounts extended to uninsured patients

$ 56 million

Bad debt costs for patients who do not pay for services

$ 175 million

Losses incurred by serving Medicare patients

$ 419 million

Losses incurred by serving Medicaid patients

$ 145 million

Costs of community-building activities and other services that meet a strong community need but do not pay for themselves and would typically not be provided based on financial considerations alone

$ 27 million

Costs of professional medical education, research, and cash and in-kind contributions to local nonprofits and charities

$ 123 million

The total value of uncompensated care and other community benefits provided by CHS facilities
during 2011 was $1.16 billion.

This chart reflects the major categories of community benefit recognized by the North Carolina Hospital Association. Figures are
based on actual costs, not charges. The overall total represents the collective value of benefits attributable to Carolinas HealthCare
System across the entire two-state system and includes Carolinas Medical Center, 10 other CHS hospitals in greater Charlotte, and 22 other affiliated medical centers and hospitals.